On the first day of the fiscal year, a company issues a $2,000,000, 8%. five-year bond that pays semiannual interest of $80,000 ($2,000,000 x 8% x ), receiving cash of $2,170,604.

(1) Before you even make the journal entry, can you tell whether the bond is being issued at face value, a discount, or a premium? If so, how? (2) Please journalize the bond issuance.